The 10-second takeaway
For the quarter ended June 24 (Q2), Lockheed Martin beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.
Margins improved across the board.
Lockheed Martin logged revenue of $11.92 billion. The 19 analysts polled by S&P Capital IQ anticipated revenue of $11.29 billion on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $11.54 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.38. The 21 earnings estimates compiled by S&P Capital IQ forecast $1.91 per share. GAAP EPS of $2.38 for Q2 were 11% higher than the prior-year quarter's $2.14 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.2%, 130 basis points better than the prior-year quarter. Operating margin was 9.5%, 10 basis points better than the prior-year quarter. Net margin was 6.6%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $11.24 billion. On the bottom line, the average EPS estimate is $1.85.
Next year's average estimate for revenue is $45.68 billion. The average EPS estimate is $8.10.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,759 members out of 1,874 rating the stock outperform, and 115 members rating it underperform. Among 490 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 469 give Lockheed Martin a green thumbs-up, and 21 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lockheed Martin is hold, with an average price target of $86.13.
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